Indonesia: KEB Hana Indonesia Rights Issue IV-01/Suralaya Village

Date Filed
13 Sep 2023
Status
Phase
Assessment
Country
Indonesia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Compliance
CURRENT Status
Assessment

Complaint Overview

Complainant

PENA Masyarakat community-based organization, Trend Asia Indonesian NGO, Recourse NGO, and Inclusive Development International, USA-based NGO, on behalf of the community members from the Suralaya village in the Banten province of Indonesia.

Concerns

Environmental, social, and health impacts due to construction of the Java 9 & 10 coal power plants, including but not limited to air pollution, land acquisition, loss of income, climate impact, intimation, retaliation, and more.

Cross-Cutting Issues
Climate Change Impacts Air Biodiversity Community Health and Safety Loss of Livelihoods Land Resettlement Private / Personal Property Damage Violence / Abuse

Project Information

Region
East Asia & the Pacific
Institution
IFC
Name & Number
CAO complaint regarding KEB Hana Bank Indonesia Rights Issue IV, (IFC Project Number: 42034) in Indonesia
Company
PT Bank KEB Hana Indonesia (Client) - PT Indo Raya Tenaga (Subclient)
Sector
Infrastructure
Department
Other
Commitment

IFC issued KEB Hana Indonesia Rights IV as an additional equity investment of up to IDR 216 billion (US$15.36 million equivalent).

Synopsis

Project Overview

In 2020, IFC client PT Bank KEB Hana Indonesia joined a consortium of commercial and public banks that provided financing for the expansion of the Suralaya coal-fired power plants in Indonesia. The two new power plants, Java 9 and 10, are being developed by PT Indo Raya Tenaga near Suralaya village in the Banten Province. As of September 2023, about 80% of the construction of Java 9 & 10 has been completed, with full operation scheduled for 2025. The two-unit expansion will have an estimated 2GW capacity.

Complaint

The complainants are residents of Suralaya Village who raise several issues stemming from the expansion of the power plants. These include i. air pollution from the existing power plants, causing health problems that will be further intensified by the construction of additional power plants; ii. the expansion has led to land acquisition from residents, which does not comply with IFC performance standards; iii. loss of livelihood, especially for fishermen, due to the expansion; iv. additional environmental and climate impacts negatively affecting the living standards of Suralaya residents and neighboring regions; v. intimidation and retaliation against individuals who speak out about the aforementioned adverse impacts.

CAO Action

In October 2023, CAO found the complaint eligible for assessment. The assessment process is now ongoing.

Status

The case is currently under assessment.

*Note: The CAO assessment process does not entail a judgment on the merits of the complaint,  rather, it seeks to understand the facts and empower those involved to make informed decisions on how to address the issues raised. 

 

Status as of November 22, 2023

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